For first time home buyers, it's important to make sure your finances are in order. To successfully buy a home, you'll need patience, an ability to take rejection and sound financial planning.
So here's what you need to get in order:
Your other debts: The first thing lenders will look at when you're buying a home is your other debts. This includes car loans, student loans, credit card payments and anything else you may owe each month. They'll want to see that your debts plus your proposed mortgage will consume 45% or less of your income.
Your credit score: You'll also need to get your credit score in order. The minimum credit score to get a mortgage these days is about 600. Your credit score dictates what loan program you can apply for, which can sway a seller. So, the higher your credit score, the more and better loan offerings you will receive.